In a bid to encourage budding entrepreneurs and the new wave of startups, the government will announce a friendly tax regime in the Budget next month, Finance Minister Arun Jaitley has said.
“We have already worked upon an entrepreneur-friendly taxation regime. There are some steps, which can be taken up by notifications, which would be taken forthwith. Others require legislative provisions, which can only come as part of the Finance Bill when Budget is presented in order to create a friendly taxation regime for startups,” he said at the StartUp India Conference in Delhi.
According to the minister, recognising the need to encourage startups, a fund was suggested in the Budget last year.
He assured the startups that both the banking system and the government will make the resources available to them.
Besides Startups, the government will launch Stand Up India scheme, under which bank branches will lend to entrepreneurs belonging to SC/ST and women categories.
“On the Independence Day, Prime Minister (Narendra Modi) had announced the Stand Up India scheme. The Stand Up India would be separately launched. It is a programme, which envisages women entrepreneurs and entrepreneurs belonging to the SC, ST classes (to get funding from banks). These were the segments which were not throwing up entrepreneurs.”
“Each bank branch, public sector or private sector, would actually adopt one in the SC/ST category and one in the women category. So they will adopt two such entrepreneurs and fund them to set up establishments,” he said.
“Almost 3,00,000 new entrepreneurs over the next two years will be created,” the minister added.